Apparatus and method for obtaining lowest bid from information product vendors

ABSTRACT

A system and method for competitive bid selection from a plurality print and other customized information product vendors based on a database of vendor records, each record identifying a vendor, one or more buyers who approves the vendor for receipt of invitations to bid, and a vendor capability data representing production and economic capabilities of the vendor. A buyer&#39;s invitation for bid data is received, representing a specific print and other customized information product or service and an invitation to bid on that product or service, and a data identifying vendor requirements for producing the product is calculated. An vendor&#39;s invitation to bid is transmitted to the vendors from among those approved by the buyer associated with the buyer&#39;s invitation for bid having a vendor capability data meeting the calculated vendor requirements. Responding bids from the vendors are input into the database and ranked in order of price. The lowest price bid is identified and an order is issued to the selected vendor. Further, a bid information data is transmitted to each of the non-selected vendors, representing the identity of the selected vendor and the rank order value of the bids.

FIELD OF THE INVENTION

[0001] The present invention generally relates to an apparatus andmethod for creating a database representing print and other informationproduct vendor pools for one or more subscribing buyers, and forselecting the lowest bidder from the databases represented vendor poolon a per-job basis and, more particularly, for creating and maintaininga database representing a vendor pool for each subscribing buyer ofprinting and other customized print information product goods andservices, the database further representing capabilities of saidvendors, receiving invitations-for-bid from buyers, extracting vendorqualification criteria data from said invitations-for-bid, transmittinginvitations to bid on said invitations-for-bid to qualified ones of saidvendors, based on said vendor qualification criteria data, and selectingfrom among the responding vendors based on the response price and otherfactors.

BACKGROUND OF THE INVENTION

[0002] Purchase of print and other customized information product goodsand services, such as business cards and forms, envelopes, labels,pamphlets, CD ROMS, notepads, transparencies, brochures, and bound booksdiffers from non-custom manufactured goods or services in that print andother information product goods and services are generally notpre-stocked as “off-the-shelf” items but, instead, must be specificallymanufactured or provided to meet the buyer's particular requirements.Consequently, print and other information product goods and servicesfrequently cannot be purchased “off-the-shelf” at fixed prices appearingon standard price lists. Instead, most print and other informationproduct goods and services are customized to some extent and,accordingly, their prices are established when the specific goods orservices are themselves identified, either by an actual order,invitation-for-bid (“IFB”), request-for-quote (“RFQ”), orrequest-for-proposal (“RFP”); only then can the manufacturer or serviceprovider assess the precise quality and manufacturing or servicespecifications required to perform the job.

[0003] The general procedure used in the prior are of procurement ofprint and other customized information product goods and services isthat the buyer provides the actual order, or the IFB, RFQ, or RFP to oneor more printers with whom, in general, the buyer has had sufficientprevious experience to know what type of product or level of service canbe provided. For purposes of this description, the terms “printer” and“print vendor” are interchangeable and are defined as an entity whichmanufactures or sells traditional forms of printing or othernon-traditional types of information product goods or services, whichare or which consist of any tangible medium for communicating ordisplaying text, images, or other graphical or pictorial information,including, but not limited to, business forms, labels, pamphlets, books,flyers, brochures, transparencies, CD ROMs, stickers, business cards,envelopes, and note pads. For purposes of this description the terms“print information product” and “print information goods” areinterchangeable and defined to include all of the above-identified goodsand services. The printer then reviews the buyer's product manufacturingand delivery specifications or requirements contained in the order, IFB,RFQ, or RFP including physical specifications, characteristics of style,quantities, mode of shipment, delivery schedule, and quality levelrequired to perform individual jobs or estimated job requirement over agiven period of time and, based on or extrapolating from previousexperiences, provides an estimated price or bid to the buyer. Generallythe buyer will provide the order, invitation-for-bid, request-for-quote,or request-for-proposal to a single or very limited number of printvendors, and award the contract to the single or lowest bidder.

[0004] In following this general procedure in the prior art, however,buyers of printing and other customized information product goods orservices confront the so-called “iron triangle” of quality, timeliness,and cost. Buyers want a product or service that is good, fast, andcheap, but what they discover is that traditional procurements methodswill, at best, only achieve two of these three ideals on any given job.Thus, a buyer might demand and receive top quality on a “rush” order,but only at a high cost. Conversely, negotiating a lower price mayachieve cost savings, but also compromise quality and timeliness.

[0005] This problem is heightened by great elasticity in the so-called“market” price of printing or other customized information product goodsor services, which can vary widely from vendor to vendor and from weekto week. This elasticity results from the fact that pricing of suchcustomized goods or services greatly depends on (1) the level of serviceand quality desired; (2) the labor and equipment required to produce thejob or provide the service; (3) the amount time involved in producingthe job or providing the service; (4) whether the job or service can beengineered or designed in a cost-effective way; and (5) whether thecustomer order can be included in the print vendor's production scheduleto comply with the required delivery date.

[0006] This last factor is particularly crucial. Most print vendors are“hard-iron” manufacturers with high overhead and labor costs. As aresult, idle equipment and labor can be devastating to a print vendor'sprofit margin. At the same time, print vendors must be ready to servicetheir regular customers on short notice, which means planning fordowntime in the production schedule to ensure that their machinery isavailable for “rush” orders. Managing customer job orders in a way thatminimizes these “holes” in the production schedule is frequently whatdistinguishes the profitable print vendor from the insolvent one.

[0007] As a result of this tension between the cost of idle equipmentand labor and the need to preserve downtime for regular customers, printvendors are constantly seeking short-turnaround jobs to fill theirproduction “holes” when their regular orders do not materialize. Toobtain these short-turnaround jobs, many print vendors will resort toextremely low pricing, provided that they can do so without underminingtheir regular customer relations. This pricing strategy is called“contribution pricing”. “Contribution” pricing is the practice ofbidding out work at below normal profit margins because any income aboveout-of-pocket costs “contributes”, 100%, to the print vendor's bottomline in comparison to cost of letting its labor and machinery remainidle. In current printing markets, “contribution” pricing on a regularbasis is found only in federal and state government procurements ofprint information products.

[0008] In both public and private sector print information productmarkets, however, traditional procurement methods and prior art deviceshave failed to solve this “iron triangle” because of their inability totake advantage of “contribution” pricing without incurring prohibitiveadministrative costs or sacrificing quality or timeliness. There aremany reasons for this failure. First, the purchase or procurement ofprinting and other customized information product goods and servicesfrequently requires specialized knowledge and expertise in finding theright print vendor for each job. Most businesses, however, hirepurchasing officials with general procurement knowledge who are thengiven responsibility for a wide range of purchases. As a result, thepurchasing official is forced to rely on the print vendor's expertise indesigning or engineering a print job, which too often results in themost expensive (and most profitable for the print vendor) design,engineering, or production process.

[0009] Second, in order to find the manufacturer or service provider whois willing to offer the lowest “contribution” pricing on any given job,the buyer must often request price quotations from dozens or evenhundreds of vendors. In the actual business environment, however, thereare difficulties which makes selection of a print vendor willing tooffer “contribution” pricing difficult for the buyer. There are alsodifficulties and tradeoffs which make preparation of responding bidsdifficult for the print vendors. For example, from the buyersperspective, a first difficulty is identifying the pool of print vendorsto whom it should send its IFB or RFQ. A larger vendor pool would, intheory, be desirable because it usually means a lower bid can bereceived. This is well-known in the general business world. However,identifying such a large vendor pool is generally not practical. A mainreason is that gathering and maintaining information about a largenumber of current and potential print vendors is time consuming andexpensive. Few companies have the time, money, or inclination tomaintain a large, up-to-date database on such potential vendors,particularly when soliciting dozens of bids or quotations will itselfrequire staff and administrative time that costs more than the savingsgenerated from competitive bidding. This disparity is heightened by thefact that most print jobs involve relatively low dollar purchases orprocurements.

[0010] In addition, even if a buyer were willing to absorb theadministrative costs associated with keeping a large database of vendorsto improve the competitive bidding, the buyer is often reluctant to doso because quality control becomes more difficult as the vendor poolincreases. Part of quality control is to monitor the quality anddependability of goods and services output by each vendor in the vendorpool. This is difficult not due only to the volume of the information,but also to the fact that the buyer must generally obtain suchinformation from its own dealings with the vendor. The reason is thatreliability, price history, and quality of a print vendor's work forother buyers may not be obtainable. This is another reason that buyerswill not seek goods or services from new vendors because negativeinformation on their reliability or quality may then be learned firsthand.

[0011] In the pubic sector, where federal and state agencies are oftenrequired by law to make bid opportunities available to large numbers ofvendors, procurements of print information products typically result inpoor quality control and relatively high administrative costs that mustbe subsidized by the taxpayer. In contrast, traditional procurementmethods and prior art devices in the private sector have emphasizedquality control by limiting the vendor pool for print information goodsand services to a small number of reliable vendors with which it haspreviously done business. However, as the present inventor hasdiscovered, there is a significant cost problem associated with limitingof the vendor pool to a small number. The problem is that the limitedcompetition results in vendors offering, and charging, higher prices,being undisciplined by a more competitive market. Such prior art methodsare typically based on direct negotiation with preferred vendors inestablished commercial relationships, often resulting in controlled termpricing that lumps procurements together in the hope of enhancing theprint buyer's buying power within a narrow pool of vendors; and “bestbuy” or “best value” procurement practices (which are now being adoptedincreasingly in the public sector) that are largely creative user orquality control driven.

[0012] Because of the limitations of traditional procurement methods,print vendors are often left not only with unscheduled holes in theirproduction schedules, but also unable to fill downtime purposefully setaside for last minute “rush” orders from regular customers. Moreover,even those print vendors who would gain, in an immediate sense, fromcontribution pricing are frequently unwilling to offer that pricing totheir regular customers. The reason is that the regular customer, afteronce receiving a contribution pricing from its vendor due to the vendorthen facing idle machine time, would expect to pay the same low pricesfor its future print jobs. The regular customer would even expect thevendor to give contribution pricing at times when the vendor lacks idleproduction capacity. As a result, the vendor would have to displace moreprofitable work to accept the lower paying work, in order maintain thegoodwill of its customer.

[0013] The printing industry addresses the problem of maximizing machineutilization without compromising its relationship with preferredcustomers through sales and marketing efforts which, in turn, increasethe cost of each print job and which, ultimately, the print vendorpasses to the print buyer through higher prices. The need to maximizefactory floor and machine utilization is in no way unique to theprinting industry. It is a major concern in many other customizedmanufacturing operations.

[0014] As a consequence of the foregoing, there has been a long feltneed for a system and method of competitive pricing for custom printedgoods and printing services that: (1) identifies and manages largevendor pool to obtain the benefit of enhanced pricing competition,without imposing relatively high administrative costs or causing a lossof quality control; (2) offers vendors an inexpensive, cost effectiveand reliable system for obtaining access to print jobs andspecifications without added marketing costs and sales commissions; and(3) does not rely on the vendors' product expertise to establish price,but rather allows each vendor to bid high, bid low, or not bid at allbased, strictly, on their production capabilities and need to fillavailable time in their production schedules.

SUMMARY OF THE INVENTION

[0015] The present invention provides a system and method for selectinga printing vendor from a plurality of printing vendors, comprising stepsof receiving, at a central, conventional database server termed hereinas “the PrintProSys^(SM) server”, an initial vendor pool data set fromeach of a plurality of buyers, the initial vendor data set identifyingan initial vendor pool for that buyer, entering the initial vendor pooldata set into a vendor database within the “PrintProSys^(SM) server”,transmitting an invitation to subscribe to each vendor in the initialvendor pool, receiving a vendor capability data from a sub-plurality ofthe vendors in the initial vendor pool, the vendor capability datadescribing each vendor's print capabilities, entering the vendorcapability data into the vendor database, receiving at thePrintProSys^(SM) server a buyer's invitation-for-bid describing acustomized print or other information product or service that the buyerwishes to procure or obtain bids for, calculating or extracting a vendorselection criteria data from the buyer's invitation-for-bid, the vendorselection criteria data defining the values that a vendor's capabilitydata must meet to qualify for, and to receive, a vendor'sinvitation-for-bid requesting a bid response corresponding to thebuyer's invitation-for-bid.

[0016] The method of the present invention then compares and correlatesthe vendor selection criteria data to the vendor capability data fieldof each vendor data record in the buyer's vendor pool database. ThePintProSys^(SM) server then transmits a vendor's invitation-for-bid datato each vendor in the buyer's vendor pool whose vendor capability datafield meets the vendor selection criteria data extracted from thebuyer's invitation-for-bid data. Next, the PrintProSys^(SM) serverreceives a plurality of responding bid data, each being from acorresponding one of the plurality of vendors to whom a vendorinvitation-for-bid data was transmitted, and each representing thetransmitting vendor's price for the particular print information goodsor services requested. The PrintProSys^(SM) server then selects theresponding bid data having the lowest represented vendor price andgenerates information identifying the buyer of the identity of theselected vendor.

[0017] Upon the PrintProSys^(SM) server's receipt of an approval datafrom the buyer, it issues an order to the selected vendor for thepurchase of the at least one printed item. In addition, thePrintProSys^(SM) server's transmits to the remaining non-selectedvendors in the vendor pool a bidding result data representing theidentity of the selected vendor, and the rank order value of the biddata submitted by all other selection pool vendors.

[0018] The PrintProSys^(SM) server of the invention has the furtherability to maintain multiple vendor pools for each of a plurality ofbuyers, the multiple vendor pools for a particular buyer correspondingto multiple print product or service types that the buyer procures.

[0019] A still further embodiment transmits a data representing the bidprice of all received bids, to all vendors who submitted bids.

[0020] A further embodiment of the invention assigns a preferred vendorflag to each vendor record and then selects vendors for receivingvendors' invitation-for-bid based on the flag value.

[0021] A still further embodiment of the invention automaticallygenerates a set of project milestone data for use in monitoring thewinning vendor's progress on the buyer's requested print job or service.

[0022] A still further embodiment of the invention receives an invoicedata from the winning print vendor upon completion of the job, andgenerates a corresponding buyer's invoice in response. The system thenreceives a fund transfer from the buyer based on the buyer's invoice anddeposits the fund into an escrow account. Next, the system subtracts asystem fee from the deposited amount, transfers that system fee to asystem administration account, and transmits the remainder from theescrow to the winning print vendor. This embodiment provides a singlesource accounting for buyers dealing with a plurality of vendors.

BRIEF DESCRIPTION OF THE DRAWINGS

[0023] These features and advantages of the present invention will bemore fully disclosed in, or rendered obvious by, the following detaileddescription of the preferred embodiment of the invention, which is to beconsidered together with the accompanying drawings wherein like numbersrefer to like parts and further wherein:

[0024]FIG. 1 is a general flow chart showing the steps associated with apreferred first embodiment of the present invention;

[0025]FIG. 2 is a tabulated format of information fields submitted bypotential subscribing print vendors for the pre-qualification step ofcreating a database of a buyer's pool of print vendor;

[0026]FIG. 3 is a general flow chart showing steps of a secondembodiment of the invention, using a preferred vendor flag as aselection criteria for receiving invitations-for-bid; and

[0027]FIG. 4 is a general flow chart of another embodiment of theinvention, having a milestone generation feature.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

[0028] The method and apparatus of the present invention will be betterunderstood by a description of its operation in reference to theattached figures.

[0029] For purposes of this description tile following definitionsapply:

[0030] The index “i” identifies the particular vendor;

[0031] The index “j” identifies a particular buyer;

[0032] The value “J” is the number of buyers;

[0033] VR_(ij) is the vendor record of the i^(th) vendor in the j^(th)buyer's vendor pool or, equivalently, a vendor record of a vendor “i”that is a approved by buyer “j” for receiving bids on that buyer's jobs;

[0034] K_(j) is the number of vendors in the j^(th) buyer's vendor poolor, equivalently, the number of vendors having vendor records VR_(ij)indicating approval by buyer “j” for receiving bids on that buyer'sjobs;

[0035] BVP_(j) is the Buyer's Vendor Pool of the jth buyer, referencingall of the K_(j) vendor records VR_(ij) associated with the j^(th)buyer; the plurality of K_(j) vendor records VR_(i), in the serverdatabase is the Buyer's Vendor Pool BVP_(j), for j=1 to J.

[0036] Other definitions are recited where appropriate.

[0037] Referring to FIG. 1, the process begins at step 2 by inputtingfor each of J buyers, each identified by the index j, a plurality ofK_(j) vendor records VR_(ij) into the memory of a conventional networkserver running under Windows NT or any of the equivalent serveroperating systems that are well-known in the art. The server is termedthe PrintProSys^(SM) server for purposes of this description.

[0038] The method then proceeds to step 4 where aninvitation-to-subscribe ITS_(ij), for i=1 to K_(j), is generated foreach of the K_(j) vendors identified by the j^(th) buyer, for each ofthe J buyers.

[0039] Next, at step 6, a vendor capability attribute data, VA_(ij), fori=1 to L_(j) is quantified by each of a plurality of L_(j) vendors,where L_(j) is the number of vendors from the quantity K_(j) of vendorsin the j^(th) Buyer's Vendor Pool BVP_(j) from whom a vendor capabilityattribute data is received. For each j^(th) buyer the value of L_(j) canrange from zero to K_(j). The vendor capability attribute data, VA_(ij)represents the manufacturing, production, or provider capabilities ofthe i^(th) or submitting vendor. The vendor capability attributesVA_(ij) are in terms of understandable descriptor words, having specificvalue tables determined by the particular implementation of the system.An example set of vendor capability attributes VA_(ij) is shown on FIG.2, and includes the vendor's ability to generate various quantity rangesof: Books, including loose-leaf, side-stitched and perfect bound; Books,Smyth-sown, case-bound; Books, saddle stitched; Books, paste on fold;Binders Only; Print Composition, including CD ROM, general, magneticmedia, variable imaging, master and replication; Die Cutting andLetterpress capabilities; Four-Color Process capabilities; Cut Sheetscapabilities; Business Form Specialties; Continuous Form capabilities;Snap Apart Sets capability; capability for Flexography, Labels, Decaland Screen Process On Labels; capability for Screen Printing andPrinting of Plastic, Mylar and Acetate; Miscellaneous PrintingProcesses, including thermography, engraving, foil stamping andembossing; capabilities for various Specialty Items, including tabloids,microfiches, negatives, lamination, engineering drawings, tags,expansion file folders, 3-ring binders and advertising specialties; andenvelopes.

[0040] At step 8 the vendor capability attributes VA_(ij) aretransmitted to, received by and stored by the PrintProSys^(SM) server.The vendor capability attribute data VA_(ij) may be submitted by thevendor over the Internet, via an interactive data entry terminal, e.g.,a conventional personal computer, as is known in the art.

[0041] In an alternative embodiment, the vendor may supply thequantified vendor capability attributes VA_(ij) by paper form (notshown), the data from which is then entered into the PrintProSys^(SM)server storage by manual means. As yet another alternative, the vendorcan supply the quantified vendor capability attribute data VA_(ij) bymagnetic data storage media, or optical data storage media, orequivalent transportable media of the types that are well known in thedata storage arts.

[0042] Upon completion of step 8 the PrintProSys^(SM) server contains Jof the above-identified Buyer's Vendor Pools BVPj, for j=1 to J, eachconsisting of K_(j) vendor records VR_(ij), each vendor record havingthe received quantified vendor capability attribute data VA_(ij). Thequantified vendor capability attribute data VA_(ij) field of the vendorrecords VR_(ij) for which no was received are null entries.

[0043] Referring to FIG. 1, any of the J buyers, for example the j^(th)buyer, may now proceed to step 10 and transmit a buyer's invitation forbid specification BIFB to the PrintProSys^(SM) server. In response toreceiving the BIFB from the j^(th) buyer, the PrintProSys^(SM) servergoes to step 12 and calculates or extracts a vendor capability criteriaCC from the BIFB, which defines the values that the quantified vendorcapability attribute data VA_(ij) field of a vendor record VR_(ij) musthave to qualify for bidding on the job defined by the buyer's invitationfor bid specification BIFB.

[0044] Referring again to FIG. 1, the method proceeds to step 14 wherethe PrintProSys^(SM) server compares or correlates the extracted avendor capability criteria CC against the vendor capability attributedata VA_(ij) of each vendor record VR_(ij) in, or having a j valuerepresenting of it being in, the j^(th) Buyer's Vendor Pool BVP_(j).Next, at step 16, for each, if any, of the vendor records VR_(ij) havinga vendor capability attribute data VA_(ij) meeting the vendor capabilitycriteria CC, the PrintProSys^(SM) server reformats the BIFB into avendors' invitation for bid VIFB, and transmits the VIFB to the printvendor based on the name and address field of the vendor record VR_(ij).The vendor's invitation for bid VIFB specifies the print informationproduct or service in a consistent, standardized format so that eachreceiving vendor will understand clearly all product, delivery and otherrequirements for the print information item or service that is beingplaced out for bids by the buyer. This arrangement ensures that the bidsare comparable and that mistakes as to the requirements of the buyer areminimized, while enabling each vendor to prepare a more precisecalculation of its responding bid B_(i).

[0045] Referring to FIG. 1, at step 18 one or more of the vendorsreceiving the vendor's invitation for bid VIFB submits a bid B_(i) tothe system, where the index “i” identifies the submitting vendor. Thebid is received by and input to the PrintProSys^(SM) data server. Then,at step 20 the PrintProSys^(SM) data server detects the lowest price bidand at step 22 transmits to the buyer a data, WIN, informing of theidentity of that lowest price vendor. At step 24 the PrintProSys^(SM)server awaits receipt of approval data APP from the buyer and, uponreceipt, issues an order data ORDER to the selected vendor for purchaseof the print item or procurement of the printing service at the bidprice. If step 24 does not receive the approval data APP no order dataORDER is transmitted. At step 26 the PrintProSys^(SM) data servergenerates BIDINFORM data representing the remaining non-selected vendorsin the vendor selection pool VSP_(jk) and the identity and the bid priceof the bids B_(i) received from all of the responding vendors, and thisdata is then transmitted to all of the vendors.

[0046] A minor variation of the above-described first embodiment, whichis not shown, omits the step 4 generation of the invitation-to-subscribeITS_(ij), for i=1 to K_(j).

[0047] A first embodiment of the invention, and variations thereof, havebeen described in reference to FIG. 1. In the FIG. 1 embodiment, step 2inputs a vendor record VR_(ij) for each i vendor which make up aninitial vendor pool for each buyer j, and steps 6 and 8 then quantifyand input a vendor capability attribute VA_(ij) into one or more of thevendor records VR_(ij). The above-described step 12 then calculates orextracts a vendor capability criteria CC from the invitation for bidBIFB, which defines the values that the quantified vendor capabilityattribute data VA_(ij) must have to qualify the i^(th) vendor forbidding on the j^(th) buyer's BIFB. Step 14 then selects the vendorsthat receive the vendor's invitation-for-bid VIFB, based on comparingthe vendor capability criteria CC to the quantified vendor capabilityattribute data VA_(ij) for each the j^(th) buyer's vendors i.

[0048] Referring to FIG. 3, an alternative embodiment is depicted, withlike blocks having like labels compared to FIG. 1. In the FIG. 3embodiment, each vendor record VR_(ij) has a preferred vendor flagPV_(ij). The preferred vendor flag has logical values of “yes” and “no”,which represent whether the i^(th) vendor is a preferred vendor for thej^(th) buyer. The value of PV_(ij) can be set at step 40, when thevendor record VR_(ij) is entered. Step 40 is otherwise identical to step2 of FIG. 1. This embodiment does not enter vendor capability attributesVC_(ij) and does not extract a capability criteria CC from a receivedbuyer's invitation-for-bid. Instead, after receipt of a BIFB at step 10,vendors are selected at step 42 to receive vendor's invitations-for-bidVIFB solely on whether or not the vendor is a preferred vendor of thej^(th) buyer.

[0049] Referring to FIG. 4, an example of a still further embodiment ofthe invention will be described. The example FIG. 4 embodiment comprisesthe above-described steps for the FIG. 1 first embodiment, and anadditional step 28 at which the PrintsroSys^(SM) generates a milestonedata set MSTONE representing a set of job milestones calculated from theschedule, quantity and product or service descriptors corresponding tothe awarded bid. Example milestones values represented by MSTONEinclude, but are not limited to, paper and supply availability,scheduling and finishing of prep, proofing, pre-press, press sheetinspections, press work, bindery, special finishing and shipping anddelivery.

[0050] A still further embodiment, which is not depicted, combines theabove-described step 28 of generating a milestone data set MSTONE withthe above-described embodiment of FIG. 3.

[0051] Another embodiment of the invention combines embodiments of FIGS.1 and 3, and selects vendors for receipt of vendors' invitation-for-bidVIFB based on either of the two described selection criteria being met,i.e., if the extracted vendor capability criteria CC is met by thevendor capability data VC_(ij), or if the vendor has a preferred vendorPV_(ij) flag value of “yes”.

[0052] Yet another embodiment of the invention receives an invoice datafrom the winning print vendor upon completion of the job, and generatesa corresponding buyer's invoice in response. The system then receives afund transfer from the buyer based on the buyer's invoice and depositsthe fund into an escrow account. Next, the system subtracts a system feefrom the deposited amount, transfers that system fee to a systemadministration account, and transmits the remainder from the escrow tothe winning print vendor. This embodiment provides a single sourceaccounting for buyers dealing with a plurality of vendors.

[0053] As can be readily determined by one of ordinary skill in the artof print procurement, there are numerous advantages obtained with thepresent described invention. First, the invention quantifies both thebuyer's needs and the vendors, attributes in a database system thatmatches objective print information product or service specificationswith pre-determined vendor quality levels and manufacturing, production,or provider capabilities. The invention creates multiple vendor poolsfor each buyer, each vendor pool being for a particular type of printinformation product or services. As a result, the print buyer has alarge pool of qualified vendors to which each invitation-for-bid can bedistributed. Further, the buyer is no longer dependent on an individualprint vendor's specialized knowledge and, instead, is able to obtaincompetitive pricing based on objective specifications that reflect thebuyer's requirements rather than one particular vendor's existingbacklog, manufacturing, production, or provider preferences. At the sametime, print vendors can calculate more precisely, and hence morecompetitively, the pricing in their bids due to availability of completeobjective specifications. Most importantly, given a sufficiently largevendor pool for each job, combined with the fact that each vendor canbid high, bid low, or not bid at all without concern for loss of thebuyer's good will, the buyer is virtually assured of receiving“contribution pricing” from at least one responding vendor on each andevery job.

[0054] In addition, by employing the invention, the print buyer sets theparameters for both vendor pool selection and for the bidding and awardprocess. The parameters are set in such a way, however, that vendorquality and responsibility is determined at the time each vendor pool isestablished and only the responsiveness of each vendor's bid is reviewedat the time of award. In this manner, the buyer can create and managelarge vendor pools without having to assess the quality of each biddereach time an individual job is bid Moreover, the bidding and awardprocess is standardized so as to make the dissemination of invitationsfor bid, the receipt of bids, and the award of the job to the lowestresponsive and responsible bidder virtually automatic and without theneed for additional procurement staff or the expenditure of relatedout-of pocket administrative costs.

[0055] Moreover, the invention creates a system of “no-holds barred”competitive bidding. Once approved for a vendor bidding pool, theprinting vendor no longer has to expend additional costs on sales ormarketing to obtain future jobs from the same buyer, and from otherbuyers with pre-qualification requirements met by the vendor'scapability attributes. The printing vendor is thereby assured access tofuture bidding opportunities that match the vendor's quantified qualitylevel and/or manufacturing, production, or provider capabilities. Inaddition, knowing beforehand that the award will go to the lowestresponsive and responsible bidder, each participating vendor will havean incentive to submit their lowest bid upfront, rather than hold backtheir lowest bid, as they would otherwise be inclined to do if the awardwas still going to be negotiated after bid opening. The inventionfurther provides that all bids are released to all bidders after award,thereby creating a “ratcheting down” effect as each vendor learns howlow the price range is likely to be on similar jobs in the future. Asresult, buyers who use the invention will benefit from consistently lowprices from selected quality vendors, while enabling their purchasingpersonnel to focus on budget planning, job preparation, internalcustomer service needs, and production quality and compliance.

[0056] It is to be understood that the present invention is describedabove in reference to specific embodiments which are for purposes ofexample only, and that the invention is not limited to the specificarrangement, order of processing, or hardware for carrying out the stepsas described hereinabove or shown in the drawings, but also comprisesthe various modifications readily apparent to one skilled in the artupon reading this specification, as defined by the broadest scope of theappended claims.

What is claimed is:
 1. A method for competitive bidding by printinformation product vendors comprising steps of: inputting a pluralityof vendor records into a storage of a general purpose computer, each ofsaid vendor records having a data field identifying a print informationproduct vendor and a buyer identification data field identifying a buyerthat said vendor is associated with; inputting a buyer'sinvitation-for-bid data into said general purpose computer, said buyer'sinvitation-for-bid data having a buyer identification data, and havingan invitation for bid on a print information product job from saidbuyer; identifying at least one vendor record as qualified, based on amatch of said buyer identification data and the buyer identificationdata field of said at least one vendor record; transmitting a vendor'sinvitation-for-bid data to said at least one vendor; inputting into saidgeneral purpose computer a plurality of bid data, each from one of saidplurality of vendors to which said vendor's invitation-for-bid data wastransmitted, each of said bid data representing a bid price; identifyinga bid data from said received bid data having the lowest represented bidprice; outputting a selected vendor data representing the identity ofthe vendor corresponding to the bid data identified by said identifyingstep; and transmitting an order to the vendor represented by saidselected vendor data.
 2. A method according to claim 1 furthercomprising a step of: inserting a vendor capability data into at leastone of said vendor records, said vendor capability data representing aset of vendor manufacturing capabilities of the print informationproduct vendor identified by said record; calculating a vendorrequirement data from said buyer's invitation-for-bid data, said vendorrequirement data representing a set vendor manufacturing capabilitiesrequired for performing said print information product job; andcomparing said vendor requirement data to the print information productrecords associated with the buyer from which said buyer'sinformation-for-bid was received, wherein said step of identifying atleast one vendor record as qualified is based on said comparing and saidmatch of said buyer identification data and the data field of said atleast one vendor record identifying a buyer that said vendor isassociated.
 3. A method according to claim 1 further comprising stepsof: ranking said received bid data according to said represented bidprice; and transmitting an information data from said general purposecomputer to other vendors identifying said selected vendor and the rankorder value of said received bid data.
 4. A method according to claim 2further comprising steps of: ranking said received bid data according tosaid represented bid price; and transmitting an information data fromsaid general purpose computer to other vendors identifying said selectedvendor and the rank order value of said received bid data.
 5. A methodaccording to claim 2, wherein said vendor capability data represents theidentified vendor's capability to manufacture each of a plurality ofdifferent types of print information products.
 6. A method according toclaim 2, further comprising steps of: transmitting a request for vendorcapability data to said at least one vendor associated with at least oneof said buyers; receiving a first formatted vendor capability data fromsaid at least one vendor; and converting said first formatted vendorcapability data into said vendor capability data, wherein said step ofinputting a vendor capability data inputs said converted data.
 7. Amethod according to claim 2 wherein said vendor capability data inputfor each of a plurality of printing vendors represents a set of vendorcapabilities relating to objective and subjective parameters for each ofa plurality of types of print information products.
 8. A methodaccording to claim 1, further comprising steps of: inputting into saidcentral data server a completion of job data; transmitting from saidcentral data server to said buyer an invoice for payment of said bidprice; inputting a payment from said buyer into an escrow account viaelectronic fund transfer; subtracting a system access fee data and alicensing fee data from a data representing said payment deposited intosaid escrow account to generate a remainder payment data; andtransferring a payment from said escrow account to an account of saidvendor corresponding to said remainder payment data.
 9. A methodaccording to claim 2, further comprising steps of: inputting into saidcentral data server a completion of job data; transmitting from saidcentral data server to said buyer an invoice for payment of said bidprice; inputting a payment from said buyer into an escrow account viaelectronic fund transfer; subtracting a system access fee data and alicensing fee data from a data representing said payment deposited intosaid escrow account to generate a remainder payment data; andtransferring a payment from said escrow account to an account of saidvendor corresponding to said remainder payment data.
 10. A methodaccording to claim 1, further comprising a step of: calculating a jobmilestone data based on said buyer's invitation-for-bid data.
 11. Amethod according to claim 10 further comprising steps of: generating ajob progress verification request based on said job milestone data; andentering a data into said central data server representing a jobprogress corresponding to said job progress verification request.
 12. Amethod according to claim 2, further comprising a step of: calculating ajob milestone data based on said buyer's invitation-for-bid data.
 13. Amethod according to claim 12 further comprising steps of: generating ajob progress verification request based on said job milestone data; andentering a data into said central data server representing a jobprogress corresponding to said job progress verification request.
 14. Asystem for competitive bidding by print information product vendorscomprising: means for inputting a plurality of vendor records into astorage of a general purpose computer, each of said vendor recordshaving a data field identifying a print information product vendor and abuyer identification data field identifying a buyer that said vendor isassociated with; means for inputting a buyer's invitation-for-bid datainto said general purpose computer, said buyer's invitation-for-bid datahaving a buyer identification data, and having an invitation for bid ona print information product job from said buyer; means for identifyingat least one vendor record as qualified, based on a match of said buyeridentification data and the buyer identification data field of said atleast one vendor record; means for transmitting a vendor'sinvitation-for-bid data to said at least one vendors; means forinputting into said general purpose computer a plurality of bid data,each from one of said plurality of vendors to which said vendor'sinvitation-for-bid data was transmitted, each of said bid datarepresenting a bid price; means for identifying a bid data from saidreceived bid data having the lowest represented bid price; means foroutputting a selected vendor data representing the identity of thevendor corresponding to the bid data identified by said identifyingmeans; and means for transmitting an order to the vendor represented bysaid selected vendor data.
 15. A system according to claim 14 furthercomprising: means for inserting a vendor capability data into at leastone of said vendor records, said vendor capability data representing aset of vendor manufacturing capabilities of the print informationproduct vendor identified by said record; means for calculating a vendorrequirement data from said buyer's invitation-for-bid data, said vendorrequirement data representing a set vendor manufacturing capabilitiesrequired for performing said print information product job; and meansfor comparing said vendor requirement data to the print informationproduct records associated with the buyer from which said buyer'sinformation-for-bid was received, wherein said means for identifying atleast one vendor record as qualified performs said identifying based ona result of said comparing means and a match of said buyeridentification data and the buyer identification data field of said atleast one vendor record.